Bill

Bill > S2993


NJ S2993

Prohibits motor vehicle liability insurance policy from restricting full payment of recovery amounts under covered person's policy.


summary

Introduced
03/18/2024
In Committee
03/18/2024
Crossed Over
Passed
Dead

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill prohibits a motor vehicle liability insurance policy from limiting the full payment of recovery amounts under a covered person's policy. Specifically, the bill prohibits a motor vehicle liability insurance policy from restricting the amount that may be recovered by a person insured under the insurance policy, whether or not an insured person is a named insured or a permissive user under the policy, to an amount less than the maximum recovery limit provided in the policy for bodily injury liability, property damage liability, uninsured and underinsured motorist coverage, and medical payments coverage. If the policy insures more than one private passenger automobile, the limits available to the permissive user shall be the limits associated with the vehicle used by the permissive user when the loss occurs.

AI Summary

This bill prohibits a motor vehicle liability insurance policy from restricting the full payment of recovery amounts under a covered person's policy. Specifically, the bill prohibits a policy from limiting the amount that can be recovered by a person insured under the policy, whether they are a named insured or a permissive user, to less than the maximum recovery limit provided in the policy for bodily injury liability, property damage liability, uninsured and underinsured motorist coverage, and medical payments coverage. If the policy insures more than one private passenger automobile, the limits available to the permissive user will be the limits associated with the vehicle used when the loss occurs. The bill defines a "permissive user" as a person who has been granted permission by the vehicle owner, but is not named on the vehicle's insurance policy, to temporarily operate the vehicle.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee (on 03/18/2024)

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